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Got $5,000? These 3 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows.
The Motley Foolยท2025-05-30 08:07

Core Viewpoint - Investing in dividend stocks near their 52-week lows can provide higher-than-average yields, especially if the company's fundamentals remain strong [1] Group 1: PepsiCo - PepsiCo's stock has decreased by 15% this year, indicating a potentially undervalued position despite a lack of impressive growth [4] - The company's recent quarterly sales were $17.9 billion, down 1.8% year-over-year, with operating profit declining by 4.9% [5] - PepsiCo is actively expanding, including a $2 billion acquisition of Poppi, a health-focused soda brand, which may enhance its growth prospects [6] - The current dividend yield is 4.4%, significantly above the S&P 500 average of 1.3%, with a payout ratio around 80%, indicating safety in dividend payments [7] - The stock trades close to its 52-week low with a price-to-earnings ratio of 19, making it a potentially attractive investment [8] - An investment of $5,000 could yield approximately $220 in annual dividends, alongside potential capital appreciation [9] Group 2: General Mills - General Mills offers a dividend yield of 4.5% and has seen a 16% decline in stock price this year, nearing its 52-week low [10] - The company reported sales of $4.8 billion, down 5% for the quarter ending February 23, with operating profit down 2.1%, aided by a divestiture gain of $95.9 million [11] - General Mills is restructuring its portfolio, including the sale of its Canada Yogurt business, to enhance operational efficiency and focus on higher-growth areas [12] - The dividend appears secure with a payout ratio just above 50%, making it a reliable option for income investors [13] Group 3: Chevron - Chevron has the highest yield among the discussed stocks at around 5%, but reported a 36% year-over-year profit decline from $5.5 billion to $3.5 billion for the quarter ending March 31 [14] - The company's performance has been impacted by falling crude oil prices, reflecting the volatility typical in the oil and gas sector [15] - Despite a 6% decline in stock price this year, Chevron maintains a stable income-generating profile, having raised its dividend for 38 consecutive years [16]